The Hidden Costs of Commercial Construction

Permitting & Compliance Fees

Many developers underestimate the expenses tied to permits, inspections, and regulatory compliance. Depending on the project scope, you may need zoning approvals, environmental impact assessments, or specialized permits for things like fire safety systems.

Material Price Fluctuations

The price of construction materials can change rapidly due to supply chain disruptions, inflation, or global demand shifts. Lumber, steel, and concrete are particularly susceptible to price spikes.

To avoid issues like these arising in the first place, it's important to do a couple things:

1) Lock in material prices with suppliers when possible

2) Work with a contractor who has strong supplier relationships and can source cost-effective alternatives

3) Build contingency funds into your budget to account for fluctuations.

Site Preparation & Unexpected Conditions

What's beneath the surface can be a costly surprise, as not all land is ready for construction. Some sites may have soft or expensive clay soils, which can shift over time, leading to foundation cracks and structural instability. In some cases, soil may need to be compacted or replaced to support the weight of a new structure. Additionally, old sites, especially those in urban areas, often have existing underground utilities like gas, water, and electrical lines. If not properly mapped, construction could hit these lines, leading to costly repairs and delays.

At the End of the Day, It's All About Choosing the Right General Contractor

Avoiding hidden costs in commercial construction comes down to careful planning and working with an experienced general contractor. At Ghoman Construction, we help clients develop realistic budgets and proactive strategies to keep projects on track without sacrificing quality.

If you're planning a commercial construction project in Indianapolis or the surrounding areas, reach out to us. We'll help you navigate the complexities of construction while staying on schedule.